Rate: 9.25% Fixed
Term: 12 Months plus Two 3-Month Extensions at 0.5% each.
Amortization: Interest Only
LTC: 77.50%
Guarantee: Recourse
George Smith Partners placed the 77.5% loan-to-cost acquisition and construction financing for a speculative single family residence in West Los Angeles. The loan was structured to include $471,000 for future funding, transforming the 1,100 square foot 3-bedroom/1-bathroom residence into a 2,500 square foot main house featuring 4-bedrooms/5-bathrooms and a 500 square foot detached guest house. Fixed at 9.25% for 12 months, the loan offers two extension periods.
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Acquisition Bridge Loan for a Newly Constructed 10-Unit Multifamily Property in Florida
April 4, 2024
Transaction Description:
George Smith Partners sourced an acquisition loan for a newly constructed 10-unit multifamily property in Florida. The borrower closed on the vacant property just after Certificate of Occupancy was received. Although the loan went into application several months ago, the seller was delayed in obtaining the C of O. Despite fluctuations in the capital markets, the lender held the fixed rate of 10.25%. The loan has a 9-month term with one 3-month extension option. A small interest reserve was structured to cover the initial payments while the property leases up.
Rate: 10.25% fixed
Term: 9 months with one 3 month extension
Origination Fee: 1%
Guaranty: Non-Recourse
- Advisors: Matthew Kirisits
